Manufacturers' Rebates

Some manufacturers may offer rebates on the goods they sell. The GST and QST rules for manufacturers' rebates apply when, for example:

• a manufacturer sells taxable goods (excluding zero-rated goods) to a customer entitled to a rebate
• the sale is made either directly by the manufacturer or by another person (such as the retailer)
• the customer receives a rebate respecting the goods from the manufacturer, accompanied by a note specifying that a portion of the rebate represents the GST and QST

How the GST and QST are applied depends on when the rebate is granted, that is, if the rebate is treated as a separate transaction or as a part of the sales transaction.